The Union Cabinet Committee on Economic Affairs recently approved the funding for procurement of up to 10,000 buses and ancillary infrastructure for urban transport under the Jawaharlal Nehru National Urban Renewal Mission (JNNURM) for all cities/ towns/urban agglomerations (UAs) with special emphasis on hilly states. The total approximate project cost is Rs.6,300 crore and the total estimated Additional Central Assistance (ACA) is about Rs. 4,450 crore.    

The funding will improve urban services, particularly urban transport which is the engine of growth in cities and towns. The salient features of the programme are as under:    

i. Sanctioning of ancillary infrastructure projects including construction/ upgradation of depots/ terminals/ stations/ control centers, Intelligent Transport Management Systems (ITS) which was not sanctioned in the earlier bus funding programme etc.    

ii. Earmarking of atleast 20 percent of the total ACA and a minimum of 2,000 buses for the hill States including the North Eastern States, Jammu & Kashmir, Himachal Pradesh and Uttarakhand. However if these States are not able to complete the placement of orders and complete other requisite processes by 31.01.2014, the un-utilized allocation would be redistributed in the month of February/March, 2014.    

iii. The financial support as ACA for ancillary infrastructure components under this programme would be a maximum Rs.20 crore for cities with million plus population and Rs. one crore and above for smaller cities.    

iv. There will be no State-wise allocation and the funds will be allocated on the basis of their needs, capacity and preparedness.    

v. New projects under this programme would be sanctioned only up to 31.03.2014.    

vi. The time-lines for procurement of buses would be co-terminus with the period of JNNURM.    

vii. Urban Transport will be an admissible component for the Urban Infrastructure Development Scheme for Small and Medium Towns (UIDSSMT) also.    

viii. Buses will be procured according to revised urban bus specifications released by the Ministry on 6.5.2013.